Cryptocurrency insurance platform Coincover raised $ 9.2 million in a Series A funding round led by Element Ventures.
DRW Venture Capital, CMT Digital, Avon Ventures, Valor Equity Partners, FinTech Collective, Susquehanna Private Equity Investments, Volt Capital and founding investors, Insurtech Gateway Fund and Development Bank of Wales also participated in the round announced Thursday.
Coincover had raised around $ 2 million in seed funding before Round A, bringing the total investment in the platform to just over $ 11 million.
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Insurance to cover loss of cryptocurrencies remains slim in the field as underwriters gradually become familiar with this new risk paradigm.
Coincover was the first crypto insurance platform to offer a policy backed by Lloyd’s of London to cover digital assets in internet-connected wallets known as ‘hot wallets’.
âThe demand for hot wallets is something that is growing a lot,â Coincover CEO David Janczewski said in an interview. âYou could also call them ‘hot’, so cold, but with some sort of inline component. To get there, we worked closely with Lloyd’s of London underwriters and followed an educational journey with them.
Coincover, which works with BigGo, Curv and Fireblocks, says it also provides backup keys for wallets and a “deposit protection guarantee” for client wallets up to $ 1 million in value.
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âCompanies like BitGo and Fireblocks are building great tech stacks. We step in when a human tends to be involved in the process, where people can make mistakes, âJanczewski said.